Is property development without money possible? What is the role of an asset management firm?

A Story by allanbrown011

Asset management firms London also manage money for individuals through cash equivalents, bonds and stocks.

What is property development?

Property development or real estate development is a multifacetedbusiness process encompassing several activities like the renovation of property, re-leasing existing property through to the purchase of land and sale of property. Property developers are the ones who tend to coordinate such activities while converting ideas on paper to something real. It is very different from the process of construction. The task of the developer is to buy land, finance real estate deals, get in touch with the builders to build the property, envisage, manage and orchestrate the property development process. It is the developers who take the risk of creating and renovating property and then later on selling it. If you own a property, you also need to manage it well. A professional asset management firm can help you to manage your property or maintain it in a way that the property has the maximum value. It seeks to optimize your asset usage and manage your efforts towards property maintenance.

What does asset management involve?

Asset management firms London also manage money for individuals through cash equivalents, bonds and stocks. They offer a variety of services like thorough management of physical assets such as property, infrastructure, equipment, plant, etc. The strategy adopted for the management of such aspects relies completely on your financial aspect like the cost of ownership, the licensing and maintenance cost, the insurance and depreciation charges. When it is asset management in the realm of property, it is termed as property management.

Property development without money

Estate investment is the finest way to make money and yield good profit. But, you need to be smart enough to make this possible. Investors love to invest in real estate properties since it offers benefits in the form of greater power to leverage, lower risk and the investors also enjoy income through capital gains and rental income. You may be considering property development but what to do if there is no money? There are many who have asked the question of whether real estate development is possible without money. In fact, it is certainly very possible. Firstly, you need to determine a suitable location for the real estate development and analyze the demand for the property. Secondly, sign a contract to buy the property but at a later stage. The lawyer can help you to prepare an optional agreement whereby you may pay an option fee to the property owner. Only when the owner is not prepared to dispose of his property at the latter stage, you must forget an optional agreement.

An agreement to share your profit after the development

If the owner does not agree to an optional agreement, you may enter into a joint venture with the owner. Apart from this, if the owner thinks that his developed property can reap higher profit and returns, you have chances. You can consider his site as your own development site where you need to sharedevelopment profits with the owner.

You can now have a development site without incurring any cost. You may also sell off the development rights and get some cash.